Thailand eyes LNG import deal with US to ease trade tensions
Thailand is preparing to offer energy import deals to the United States in a bid to rebalance trade and strengthen bilateral ties, according to Deputy Prime Minister and Finance Minister Pichai Chunhavachira.
Speaking after a meeting with executives from PTT today, April 16, Pichai said Thailand plans to sign a 15-year concession to import 1 million tonnes of liquefied natural gas (LNG) per year from the US, valued at around US$500 million annually.
The deal is expected to begin in 2026. Pricing details are still under negotiation but Pichai stressed that the contract must be cost-effective to move forward.
In addition, Thailand is looking to import 400,000 tonnes of ethane worth US$100 million over the next five years. The move comes amid concerns about the long-term viability of oil and gas production in the Gulf of Thailand.
Pichai also revealed long-term ambitions for PTT to not only import LNG from the US but to re-export it regionally, positioning Thailand as a leading energy hub in Southeast Asia.
Pichai described the initiative as a win-win strategy that benefits both countries. The US would gain a US$600 million trade surplus through these deals, while Thailand would secure vital energy supplies. However, he acknowledged that this energy-focused strategy alone would not be enough to resolve the ongoing trade imbalance between the two nations.
Recirculation of goods
Thailand will also look at importing agricultural products for use in animal feed and food processing, which would then be re-exported to expand trade.
Currently, Thailand runs a significant trade surplus with the United States, approximately 72% of total trade value. To reduce the imbalance, the government plans to either increase imports or expand both imports and exports to boost the Thai economy overall, potentially lowering the surplus to around 17%.
On the tax front, Pichai said there are no immediate changes to import tariffs. The Finance Ministry recently met with the Excise Department for a routine review but no new measures have been introduced.
Meanwhile, the Bank of Thailand Governor is scheduled to meet with Pichai to discuss capital markets and bond strategies. Pichai ruled out the possibility of Thailand selling off government bonds, saying the country’s financial management remains steady under central bank oversight.
He also addressed speculation about using foreign reserves to support the economy, insisting that the reserves are not intended for such use and should remain untouched to support trade stability.
On the topic of livestock imports, Pichai addressed growing concerns from local farmers who are planning to protest the import of beef offal. He assured that the products are intended solely for animal feed production and export, and will not impact domestic agriculture.
Thailand’s trade delegation will begin flying to the United States tomorrow, April 17, with the first group of five negotiators departing this week. Pichai is expected to follow within the next few days, depending on the US schedule, reported Thairath.
Latest Thailand News
